Urgent credit redemption

The operation consists in quickly buying back by a third-party lender all the credits in progress to merge them into a single loan (what is called the repurchase of credit). While the repayment term can be extended, the subscriber benefits from a reduction in his repayment monthly payments. Thus, he can respect his claims urgently without risking falling into a negative spiral leading to a situation of over-indebtedness.

What are the specifics of an urgent credit buyout without supporting documents compared to a traditional loan grouping? What mistakes should not be made and what conditions should be respected? Follow the guide to find the best urgent credit buyout offer for your situation!

The emergency credit buy-back: how does it work?

The emergency credit buy-back: how does it work?

The search for urgent credit buyback involves contacting one of the following actors:

  • the lending institution with which the borrower has taken out most of the loans it wishes to consolidate. We then speak rather of renegotiating credit in an emergency: the bank can only renegotiate a mortgage loan, but it can buy consumer credit.
  • a third party lender competing with the previous one which can make an offer to buy back an urgent loan;
  • an establishment specializing in the repurchase of mortgage loans or the repurchase of consumer loans;
  • an intermediary such as a broker who is an expert in fast online credit redemption or collaborating within a network of brokerage agencies and making available on his website a credit redemption simulator;
  • a local organization specializing in helping and supporting people facing a situation of over-indebtedness.

Urgent loan buy-back: for what reasons?

Urgent loan buy-back: for what reasons?

Loss of employment, divorce, imperative housing work, health costs: there are many cases that require an urgent financial contribution to meet your expenses but also the maturities of credits in progress to be reimbursed.

Faced with a drying up of cash inflows or a sudden increase in fees to be paid (or even both!), The emergency credit buy-back remains a solution to consider. The reasons for using emergency loan redemption are many and varied.

How to obtain an urgent credit buy-back?

How to obtain an urgent credit buy-back?

In order to get a loan buyout quickly, it is necessary to follow a number of steps. These allow the borrower to optimize his journey and thus respond urgently to the situation in which he finds himself. How to request an emergency credit buy-back?

  • Prepare the elements relating to the loan: copies of the mortgage or consumer loan contracts as well as the associated amortization tables should be made. At this stage, it may also be interesting to carry out online simulations in order to check the viability of a loan buyback operation.
  • Prepare a complete file: in order to maximize their chances of obtaining a loan repurchase at the best conditions, borrowers can provide proof of income (salary slips, tax notice), charges (receipt of rent, tables of depreciation) and assets (property tax, copy of bank statements, etc.).
  • Request the intervention of a bank or a specialized organization via a physical appointment, a telephone interview or a contact directly on the internet. This last option makes the procedure more fluid and saves precious time.
  • After studying the file, the financial organization gives an answer in principle, establishes a financing proposal and builds up the credit file.
  • Once the file is validated, the borrowers receive the loan offer.
  • In the case of a home loan, borrowers must wait an incompressible period of 10 days before returning the offer. For a consumer loan, this period is 14 days. It is however possible to give it up in order to gain speed.
  • The funds are then released by the lender who repays the credits by following.

What are the recommendations to follow to make an urgent loan buy-back?

What are the recommendations to follow to make an urgent loan buy-back?

It is not always easy to trust your interlocutor. Finding a quality organization to buy back credits without supporting documents means taking into account several criteria, including:

  • commercial offers made;
  • the proposed Emergency Credit Redemption borrowing rates;
  • the cost of application fees;
  • the nature and cost of the guarantees required;
  • the overall cost of the new loan granted;
  • the flexibility of the new loan taken out, in particular the fact that you can adjust your monthly payments or postpone them;
  • the possibly borrowable amount;
  • the length of the repayment period and the loan termination age;
  • the reputation of the lender;
  • any promotional bonuses and other welcome bonuses.

Urgent or not, the repurchase of credit requires a reflection. Merely the criteria of loan rate and amount of monthly payments are not enough to make the best choice. The subscriber must first observe and compare the interest rate applied and the overall cost of the credit (including the various costs inherent in the consolidation of credits).

For this, it is recommended to rely on the TEG (annual overall rate), which is an excellent basis for comparison between several credit offers. In fact, it takes into account all of the fees, and not just the interest rate.

Be careful, in a rush, borrowers tend to want to solicit many specialized financial organizations. They imagine that they can speed up the process and be able to make offers more quickly. This is counterproductive. Why ? Because the banks can be given the same file by several intermediaries.

The financial institution deduces the urgency of the file to be processed. However, the urgency and appreciation of errors generally do not mix. This situation is a source of confusion, likely to lead to urgent credit buy-back offers ill-suited to the situation of the subscriber.

The ideal remains to avoid taking out a credit buy back in an emergency, and to give yourself enough time to prepare your supporting documents before committing.

How to shorten the deadlines for granting urgent credit buy-back?

How to shorten the deadlines for granting urgent credit buy-back?

The accelerated credit buy-back procedure must follow the classic steps of a classic loan buy-back. The lending organization studies the feasibility of the operation, then makes an offer if necessary.

The borrower has a compulsory reflection period of 10 days before signing the offer if the loan buy-back is made by a mortgage, and a withdrawal period of 14 days once the offer is signed. it is done through consumer credit. In fact, the release of funds only takes place when the withdrawal period ends.

The saving of time cannot therefore be carried out on this part. On the other hand, the preparation of the file and the choice of the right interlocutor are the two fundamental criteria making it possible to obtain an urgent repurchase of credits.

How to make an urgent and rapid loan buy-back to avoid default?

How to make an urgent and rapid loan buy-back to avoid default?

A person whose debt ratio soars is no longer able in the long term to meet the repayment deadlines. This is the runaway and the long descent to over-indebtedness. The fact of not being able to honor its debts also causes it to be entered in the File of incidents of repayment of loans to individuals (FICP).

How do you end up at the Best Bank? In case:

  • non-payment of two consecutive monthly payments;
  • overdue situation for more than 60 days in the case of a repayment by non-monthly installment;
  • abuse of authorized bank overdraft following a formal notice from the bank in the event of non-regularization of the situation within 60 days for an amount equal to or greater than 500 $;
  • non-reimbursement of the capital remaining due after formal notice to pay the creditor.

If the individual does not regularize the situation within 30 days, their registration with the FICP is effective. The filing lasts a maximum of 5 years, during which time any urgent credit buy-back appears complicated to obtain. To obtain his cancellation from the FICP, the individual must regularize all his payments.

Good to know: in the event of over-indebtedness, the borrower is automatically registered with the FICP.

Given the consequences of being filed with the FICP and the deadlines for granting an urgent loan buy-back, it is essential to anticipate a negative development in its financial situation. As soon as a personal budgetary deterioration is felt, the option of restructuring their credit charges should be considered. The urgent repurchase of credit has the advantage of reducing monthly payments by lengthening the duration of repayment, in fact removing the danger of conceding payment incidents.

In addition, the fact of grouping its loans (mortgage, consumer loans, bank debts) in a single loan brings more readability and transparency. It is by having clear ideas that the subscriber can restore the situation more effectively.

Finally, the emergency loan buy-back can include a reserve of money to finance a personal project such as the purchase of a vehicle so practical in the context of looking for a job or to undertake urgent work in its accommodation. This cash flow is a real breath of fresh air, provided, however, that the debt ratio is respected after the urgent credit buyback operation, the theoretical threshold of which is set at 33%.

Can I buy emergency credits online?

Can I buy emergency credits online?

Yes, credit redemption is faster online even if the procedure remains strictly governed by the Consumer Code. In reality, these platforms do not carry out urgent credit redemption but simply make the funds available to the borrower. The funds are then used to honor the maturities of the outstanding credits pending the formalization of the real urgent credit buy-back.

The reflection and withdrawal periods (see above) are the same for a loan buyback contract concluded with an online bank.

Online credit players also offer an almost instant response in principle, while a bank’s response time is on average 48 hours. Finally, the borrower must wait 7 days to sign and return the commercial offer proposed by a bank, then wait for the final agreement and the release of funds.

In comparison, the online response for direct credit can be picked up within 24 hours after receiving the file, the funds of the urgent credit can therefore be released a week after the agreement.

Good to know: the speed with which funds are released is not taken into account in the calculation of the rate applied for an urgent credit buy-back.

Frequently Asked Questions

Urgent credit redemption without proof: is it possible?

Online banks rely on the dematerialization of the online credit application process much faster and the legal minimum in terms of supporting documents. The time saving compared to an exchange with a traditional financial institution is obvious, although the degree of commitment is not the same.

Buying back credits without supporting documents does not mean that the file must be botched. On the contrary, a complete file passes more quickly in commission within the lending organization. Incomplete, the file returns to the stack pending the delivery of all supporting documents. Remember that the file is used to assess or even prove the creditworthiness of the applicant.

Without being exhaustive, the supporting documents necessary for a rapid credit repurchase are the following:

  • an identity document (valid national identity card or passport);
  • documents related to the place of residence (invoices dated less than 3 months);
  • documents relating to the family situation (marriage contract, divorce certificate, etc.) or property (property tax);
  • documents showing the income of the borrower or the household (salary slips, tax advice, certificate of social assistance, retirement pensions, unemployment benefits, rental income, etc.);
  • documents notifying the banking situation (bank statements, amortization table for outstanding loans, financial guarantees, etc.).

Can I make an emergency loan buy-back if I am prohibited from banking?

A banking ban, or “IB”, is to be distinguished from a FICP file, as described above. Indeed, the banking ban is recorded in another file, called the FCC: Central File of Unpaid Checks. Such filing appears in the event of bounced checks or improper use of a bank card. Without regularization in the meantime, it is registered for a maximum duration of 5 years.

Although it is not legally forbidden for a person registered with the FCC to take out a bank loan, it is almost impossible to do so. Indeed, the banking ban means a very difficult situation for the borrower. As a result, financial organizations do not generally grant loans to this clientele, hence the importance of anticipating their difficulties and solving them through an urgent loan buy-back.

It is however possible to obtain the lifting of a banking ban before the 5-year period. For this, the person concerned must regularize incidents with his bank. It will then be much easier to get a quick loan buy-back.

Online Loans, Here Are 5 Types of Loans in Indonesia

Loan funds are always sought after by many people both for productive and consumptive needs. It is undeniable that loan funds will make it easier for them, especially with the advent of OJK online loans. However, not a few also actually produce negative things from loan applications made by those in need.

This can be avoided one of them by looking for OJK loans online. With the supervision of the Financial Services Authority (FSA) it means they have clear and appropriate regulations. Before that, make sure first the type of loan that suits your needs. Therefore, it is important for you to know the types of cash loans in Indonesia.


Unsecured Fund Loans or Unsecured Loans (KTA)

Unsecured Fund Loans or Unsecured Loans (KTA)

This loan is a loan that is usually given by banks to customers without the need to use any collateral. This loan has quite a lot of applicants, because this loan does not require collateral making it easier for those who do need loans quickly and easily.

To be able to apply for this loan, usually the customer is only required to have a credit card from the bank concerned or credit cards from other banks. Prospective borrowers of this type of loan generally apply for loans for consumptive needs such as for living expenses, medical expenses, to children’s school fees.


Cash Fund Loans with Collateral or Multipurpose Loans

Cash Fund Loans with Collateral or Multipurpose Loans

Not only banks can provide loans with collateral, there are also many non-bank financial institutions that can provide loans such as leasing or pawnshops. But what needs to be considered when applying for a loan from a non-bank institution is the collateral or collateral required.

The ceiling of this loan is usually relatively larger than the Loan without Collateral (KTA). The disbursement process is even faster, if the lender gets a guarantee in accordance with the proposed loan. This loan can usually be taken for a variety of needs and needs such as children’s school fees, home renovation or other needs.


Cash Fund Loans for Business Capital

Cash Fund Loans for Business Capital

For you who have a business or business, this type of loan can be one solution. Because in this type there are several special business capital loans available in Indonesia such as People’s Business Credit (KUR) and Ultra Micro Credit (UMi).

KUR has indeed become one of the loans that greatly facilitates micro, small or medium-sized businesses. This credit application must usually include a Trading Business License (SIUP). KUR also has three types, namely KUR Micro, KUR Retail and KUR TKI. Each KUR has the same purpose, the difference is only in the nominal amount given.

As for UMi, the Ultra Micro Credit is a relatively new product, because it was launched in 2017. The use of this loan is not much different from KUR, only a maximum loan that can be received is only $10 million. UMi is also given to those traders or small entrepreneurs who are considered not eligible to get KUR.


OJK Online Loans with KTP


This loan is not much different from KTA, only the main requirements needed are KTP or Identity Card as collateral. The nominal loan that can be obtained is also usually a maximum of $10 million, which is why this loan is useful for emergency needs.

The submission method is relatively easier, because it can be submitted through OJK online loans. in a matter of days the funds needed can be disbursed directly easily. However, what sometimes becomes a problem is because of this convenience that makes the interest charged very high even up to 1% a day.


P2P Lending Cash Loans

P2P Lending Cash Loans

The last is a loan from P2P Lending. P2P Lending or commonly known as Peer to Peer Lending is a platform that connects fund developers (lenders) and borrowers (loan recipients).

These borrowers are, on average, micro entrepreneurs who need capital to develop their business or company operations. These borrowers can easily apply for venture capital loans with a quick and easy process. While the developer of funds (lenders) will receive returns from the funds given to the borrowers.

One of the P2P Lending platforms that provide venture capital loans is Acceleration. Best Bank has a commitment to continue to help improve the national economy by providing capital to develop its business.

Acceleration provides business capital loans ranging from $75 million to $2 billion with flexible terms and collateral as well as competitive interest. If you need a loan to develop a business, Acceleration is the solution.

Purchase of credits: operation and principle

Buying back credits makes it easier to repay and simplify the management of your personal finances. Its objective is to lighten its monthly payments by benefiting from a better rate of credits and, possibly, in return for the extension of the duration of the loan .

The purpose of the credit buy-back is to reschedule repayments to better adapt them to its current situation. The grouping of loans also contributes to freeing up a remainder to live in the service of debt reduction and to include in the new loan cash in order to finance new personal projects. Back on the assets but also the pitfalls to avoid in the repurchase of credits.

How does a loan buyback work?

How does a loan buyback work?

The principle of the repurchase of credits is to restructure its debts in order to find financial room for maneuver. A loan repurchase, also called grouping of loans, consists in borrowing in order to redeem all the credits in progress (personal loan, real estate credit, assigned credit, revolving credit, etc.) but also bank debts like an overdraft.

There are many advantages to buying back credits:

  • Adjust the amount of the due date . A redemption of credits may lead to the same repayment duration being extended, lengthened or shortened. This great modularity makes it possible to adapt the monthly payments to the situation of each borrower.
  • Decrease the interest rate . The purpose of this receivables restructuring procedure is to reduce the monthly repayment. The operation can also be profitable by winning a more attractive loan rate than the loan rates initially taken out.
  • Simplify the management of your budget. The repurchase of credits is also used to deleverage and to clarify its budgetary situation by having only one claim to manage.
  • Finance a new project. The grouping of loans also offers the possibility of freeing up cash to finance a personal project such as the purchase of a car or the payment of work in a dwelling.

In return for these advantages, the duration of the credit can be extended. It is also necessary to take into account the costs of buying back credits, and therefore the overall cost of the operation because there are pitfalls to avoid in buying back credits.

Buying back loans is therefore a solution to consider when the economic situation leads to a decrease in interest rates, when the personal situation (unemployment, transition to retirement, accident in life, etc.), family (marriage, divorce , birth, etc.) and heritage changes (inheritance, rental investments, etc.).

But you have to take into account all the elements (amount at stake, debt ratio, remaining to live, inherent costs, etc.) to know if it is an opportunity to be seized or not.

Which loans are eligible for loan repurchase?

A loan buy-back operation allows a wide variety of credits to be grouped together:

  • Home loan;
  • Unallocated personal loan or consumer credit;
  • Credit allocated to works, cars, etc. ;
  • Revolving loan.

Depending on the proportion of each type of credit, the repurchase of loans may be subject to the regulation of home loans or personal loans.

What are the advantages of buying back credits?

What are the advantages of buying back credits?

Although the overall cost of the operation is higher, the advantage of buying credits is obvious in several situations:

  • Increase the rest to live

The repurchase of credits is used to reduce the debt ratio to increase the remainder to live. The weight of the credit is smoothed over time, offering a breath of fresh air to subscribers in a delicate financial situation. They make a better end of the month and can save again and make new projects.

  • Remove revolving credits

Revolving loans have very high interest rates (up to 20%) as far as they are indexed on the stock markets, which are therefore variable. Their duration is also theoretically unlimited, creating dangerous situations for borrowers. By buying up revolving credits to make it a simple classic loan, the rates are again fixed and lower, and the overflows limited.

  • Avoid falling into over-indebtedness

The filing of an over-indebtedness file automatically leads to registration with the FICP (national file of credit repayment incidents to individuals). The duration of this filing at the Banque de France is 5 years, with possibilities to get out of it by regularizing your situation with your creditors.

However, during this time, it is very complicated to borrow. The repurchase of credits can prove to be the ultimate solution not to fall into this vicious circle on condition of correctly quantifying the cost of the operation.

How to decrease the amount of his credits?

Consolidating loans is not a magic recipe, although it offers obvious advantages when all the criteria are skillfully under-weighed during the upstream reflection.

It must always be borne in mind that the repurchase of credits is not free and that its cost can greatly reduce the profitability of such an operation, or even be more costly in the end.

We must therefore be vigilant and not only take into account the proposed interest rate. The total cost of the credit must be studied as well as the APR (annual effective annual rate). The latter is an excellent indicator for comparing two propositions together.

However, after a loan repurchase, it is possible to obtain a reduction in the amount of the monthly payment thanks to a reduction in financial conditions and / or an extension of the duration of the loan.

Example: a borrower owes $ 1,500 over 5 months with constant monthly payments, in this case $ 300. If the term of the loan is extended to 15 months, the monthly payment will only amount to $ 100. This is the principle of buying back credits in its most simplified formula.

However, the redemption of credits also includes their interest. The capital borrowed is therefore equivalent to the sum of the capital borrowed, to which is added the sum of the interest on loans in progress, before subtracting the amount already repaid. In addition, to calculate the overall cost of the operation, it is also necessary to add the interest calculated on the basis of the rate and duration of the repurchase of capital loans.

How to simulate online credit redemption?

How to simulate online credit redemption?

In order to determine whether a loan buy-back can benefit you, it is possible to carry out simulations directly on the internet. This allows you to anticipate and best prepare your request before an appointment with a broker or a bank advisor.

To carry out a loan repurchase simulation online, you need to have loan contracts and loan amortization tables that you want to group together.

Indeed, the capital to borrow will be the sum of the remaining capital due, the early repayment indemnities and ancillary costs (for example mortgage guarantee costs). You will have to subtract from it any contribution you wish to make and add the amount of the additional project (work, marriage, travel, etc.), if necessary.

With all this information, a simulator allows you to estimate the monthly loan payment according to different durations and to select precisely the future terms of the loan.

Example of a loan buy-back

Example of a loan buy-back

Here is a fictitious example which allows us to better understand the workings of a credit buyback operation.

Durand has monthly income of $ 1,500 net and faces 3 credits being repaid:

  • a consumer loan with a monthly payment of $ 400 and an outstanding capital of $ 6,000;
  • a consumer loan with a monthly payment of $ 300 and an outstanding capital of $ 10,000;
  • a revolving credit with a monthly payment of $ 100 and a reserve always available in the amount of $ 4,000.

His initial situation is therefore as follows:

  • debt of $ 20,000;
  • sum of the three monthly payments of $ 800;
  • 700 $ to live on;
  • debt ratio of 53.3%.

A lending organization offers to buy back the credits repayable over 3 years for a cost estimated at $ 2,500.

After buying back credits, the situation is now as follows:

  • debt of $ 22,250;
  • a single monthly payment of $ 618;
  • remains to live of 882 $;
  • debt ratio of 41.2%.

Although more indebted, the borrower’s situation has improved mainly thanks to the abolition of revolving credit. The repurchase of consumer credit is profitable in this case and allows to find a monthly loan closer to debt standards (as a reminder, about 33%).

How to buy back consumer credits?

A consumer loan repurchase can be done with specialized financial organizations, banks or a broker. By combining several consumer loans, and in particular revolving loans, the borrower can make serious savings thanks to a better interest rate. Obviously, it is possible to add an additional envelope to finance a new project.

Concerning personal credits to be reimbursed, early repayment indemnities may have to be paid if the repayment relates to an amortizable loan and the amount of the operation exceeds $ 10,000 (over 12 months). However, bank overdrafts and revolving credits are never subject to the payment of these penalties. The amount of these varies according to the remaining term of the loan:

  • The loan ends in less than a year: 0.5% of the amount reimbursed;
  • The loan ends in more than a year: 1% of the amount repaid.

How to buy a mortgage?

In a context of low interest rates, many borrowers are moving towards a repurchase of mortgage loans. The difference with a repurchase of consumer loans is then essentially located at the level of the early repayment indemnities. Except in cases of exceptional exemption stipulated in the loan contract, the borrower must pay to his previous bank:

  • 3% of the remaining capital due;
  • Or 6 months of interest on the principal repaid at the loan rate.

Once the two calculations have been made, the amount to be paid will always be the lowest.

Loan between individuals: advantages and limits

Does your bank refuse to grant you a personal loan, or impose an interest rate that you consider prohibitive? Where the only means of recourse were previously the restricted circle of family and friends, the rise of new specialized platforms on the web now makes it very easy for you to obtain a loan from other individuals.

While it only represents a market share that is still in its infancy compared to the heavyweights of banking and credit, lending between individuals (PAP or P2P) is generating increasing enthusiasm, especially among those who do not meet all the conditions to obtain a classic loan or who have urgent needs!

Loan between individuals: what is it?

Loan between individuals: what is it?

Even today, most individuals go to a bank or a credit institution, whether they want to take out a loan to buy a new car or even get a loan to finance work at home. If their application is accepted, the organization selected lends them money previously deposited in savings by other clients.

 In France, a large part of access to private finance is always through the intermediation of a bank or a credit organization.

How does the loan between individuals work?

The “personal loan between individuals”, or PAP/P2P, consists of a loan of money between two individuals, without any recourse to the banking system. This form of borrowing is of course as old as the world, but had experienced a decline as the banks became preponderant in financial exchanges between individuals.

Because it re-establishes a direct relationship between the borrower and the lender, the PAP/P2P has the effect of eliminating this banking intermediation. It obviously owes its recent development to the spread of the Internet and the appearance of new platforms specializing in lending between individuals and/or mass financing (“crowdfunding”, “crowdfunding” or “crowdlending”).

Loan between individuals without any fees in advance: is it possible?Loan between individuals without any fees in advance: is it possible?

Loans between individuals are to be distinguished from donation operations offered by other crowdfunding platforms. The fundamental difference is that the beneficiary of the credit must repay the borrowed amount increased by an interest rate.

The individual lender is thus remunerated. If certain costs are therefore inevitable, it is however essential to look at the costs which are sometimes demanded in advance.

No serious and honest lender will ask to advance fees before obtaining the loan: it is a golden rule! Such a request can lead to a scam: the fees are paid but the credit never obtained. It is therefore strongly advised not to pay money before obtaining the loan.

In addition, administrative fees cannot be required either for a loan between individuals, only banks have the possibility.

How to find a loan offer between serious and honest individuals?

Finding a serious and honest lender cannot be improvised. It is necessary to prepare your request and follow a few simple rules:

  • request a loan between individuals on a specialized platform ;
  • prefer platforms that are well established and whose reliability has been demonstrated ;
  • check the legal notices on the website.

Outside the platforms, the approach must be even better prepared. You can find out on forums and social media, or ideally get a referral from your family or friends. 

Loan between individuals: what does the law say?

Did you know? As Bank & Credit expert, recalls, “the law requires that any loan between individuals equal to or greater than 760 USD be declared to the tax authorities “.

In fact, this declaration entails a series of consequences:

  • for the creditor: the debt is part of his estate assets and the interest generated by the debt must be fully included in his declaration of income
  • for the debtor: the said declaration allows the latter to justify to whom it may concern that this loan cannot be qualified as a “manual gift”

Loan between individuals: the measures to be observedLoan between individuals: the measures to be observed

Beyond the obligations of declaration to the tax administration, certain measures are to be respected within the framework of a loan from individual to individual. Thus, the regulations impose a document making it possible to prove the subscription of the credit for any loan between individuals of an amount greater than $ 1,500.

This writing may take the form of a loan agreement or an acknowledgment of debt. In certain specific cases, written evidence such as email or SMS exchanges may be taken into account. However, this is not recommended and proof for either party will be more difficult to provide.

In addition, safeguards exist and prevent abuse. The usury rates defined by the Banque de France – which correspond to the maximum interest rates that may be required – are binding on private lenders as well as on institutional lenders.

What are the advantages of the loan between individuals?What are the advantages of the loan between individuals?

First and foremost advantage: the terms of a personal loan between individuals are freely defined between the borrower and the lender. Both parties, in particular, agree on the interest rate that applies, the repayment period (up to 5 years in some cases), the regularity of payments, etc.

From the debtor’s point of view, the loan between individuals is a precious resource when the profile of the borrower has been deemed too risky by banks and credit organizations, or even when the loans offered to him are too expensive.

Among the advantages of a personal loan between individuals, let us quote the freedom offered to the contracting parties to agree on the modalities of reimbursement of the outstanding amount.

This situation is far from affecting only indebted or low-income households. Thus, a loan between individuals may interest a young entrepreneur who does not yet have solid guarantees. Recourse to the loan between individuals on the Internet can then bring the necessary boost to the launching of his business, and avoids him any painful and embarrassing canvassing of his family and his friends.

For its part, the lender is generally attracted by high interest rates and much more attractive (5% and above) than most other financial products such as passbooks, futures or life insurance. It is, on most platforms, free to carefully select the files in which it wishes to invest, as a bank would do, and most often benefits from insurance taken out by the site in the event of default.